Hong Kong Stocks’ 3-Day Loss Amid Stimulus Uncertainty; Chinese Developers and Property Stocks Surge Ahead of Key Briefings

Hong Kong's stock market sees its third consecutive day of losses as investors hold out for specifics of the stimulus package. Prior to a briefing by the housing ministry, Chinese developers witness a significant increase. Meanwhile, due to an upcoming policy change that would raise the borrowing limit, Hong Kong's real estate shares are on the rise.

The Hang Seng Index experienced a slight decrease of 0.2 per cent, closing at 20,286.85, which signifies a 4.5 per cent drop over the past three days. The Hang Seng Tech Index also went down by 1.1 per cent. The performance of Mainland China's indices varied; the CSI 300 Index decreased by 0.6 per cent, resulting in a total decrease of 10 per cent since October 8, whereas the Shanghai Composite Index saw a minor increase of 0.1 per cent.

"For a genuine surge to occur, Beijing needs to demonstrate that its financial incentives are not mere façades, but are actually driving economic development and triggering a domino effect," stated Stephen Innes, the Managing Director of SPI Asset Management in Bangkok. "In the absence of solid proof, it's probable that investor confidence will remain shaky, despite backing from government-funded financial bodies."

Uncertainty continues to linger, with a bullish trend that has regained approximately US$4.4 trillion in market worth over the previous month for the markets in Hong Kong and China displaying indications of slowing down. Investors are nervous that stock prices have significantly outpaced underlying fundamentals and are concerned that fiscal stimulus efforts might not meet anticipations. Nomura Holdings evaluates the stimulus package to be worth over 3 trillion yuan (US$421.7 billion).

Alibaba experienced a decrease of 0.9 per cent, bringing its value down to HK$98.95, while Tencent saw a 0.3 per cent loss, lowering its worth to HK$415.80. Meanwhile, online retail behemoth JD.com witnessed a sharp decline of 3.1 per cent, dropping its value to HK$155.40.